Home Affordability in San Jose, CA
The median home price in San Jose is $1,350,000 with a median household income of $117,324. Housing is significantly stretched relative to local incomes.
Median Home Price
$1,350,000
Median Income
$117,324
Price-to-Income Ratio
11.5x
Est. Affordable Home
$456,000
Property Tax Rate
0.68%
Annual Property Tax
$9,180
Sales Tax Rate
9.25%
Cost of Living Index
180
Buying a Home in San Jose
Based on the 28% rule (spending no more than 28% of gross income on housing), a household earning the median income of $117,324 in San Jose can afford a monthly housing payment of approximately $2,738. This translates to a home price of roughly $456,000, which is below the median home price of $1,350,000 — many households may need a higher income, larger down payment, or should consider more affordable neighborhoods.
Property taxes on a median-priced home in San Jose would be approximately $9,180 per year ($765/month) at the effective rate of 0.68%.
Down Payment Scenarios
| Down Payment | Amount | Loan Amount | PMI Required |
|---|---|---|---|
| 3% | $40,500 | $1,309,500 | Yes |
| 5% | $67,500 | $1,282,500 | Yes |
| 10% | $135,000 | $1,215,000 | Yes |
| 20% | $270,000 | $1,080,000 | No |
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